How Not Having the Proper REO Team can Jeopardize your REO Business.

If you have your REO Systems in place and you are experiencing growth, have you considered an REO Team?

If so, what would you consider looking for as you build your team? I have just chosen three tips for this post. There are many more, but I find that these three are important to building a successful REO business.

1. Experience

2. Education

3. Integrity

Experience

How much experience does the potential member have in doing BPO’s? What asset companies have they dealt with and for how long? What about tasks such as Utility set up and ordering services from your vendors? When it comes to the closing transaction tasks, how much experience do they have in dealing with escrow/title companies, lenders and co-agents? These are just a few of the question you should consider when building your REO team.

This is important because the REO market is different for every REO agent. And it is crucial to have a good amount of experience in dealing with asset companies, asset managers, banks, title companies, lenders and other REO agents. I have found that there is a basic flow to an REO transaction, but sometimes there are exceptions. And I have found that learning from that exception, adds to my REO experience. And I can add this to my REO process to reach a successful transaction.

Education

Training is so vitally important. Would you consider adding a team member to your business who already has been trained on various REO portals or someone who you have to train? Time is critical, especially when it comes to tasks such as BPOs or determining occupation status. Do they know the criteria for searching for comps for the BPO?

And when it comes to the contract to close tasks, how much training does the team member have in using various online transaction management systems? Such as EbrokerHouse, SettlementRoom, RELAY, TransactionDesk, TAZAREO, and others? Again, your time is important and having a member who is proficient in using these systems will save you time and money.

Integrity

Enough can’t be said about this topic. Simply put, everyone needs to be honest in their business dealings with one another. I feel that this is a foundation in a truly successful business. If a member is cutting corners to try to get the job done, it will come out in the end. Just a quick example. If a bid (quote) is submitted by a vendor for a repair on the REO property, don’t change the amount when submitting it to the asset company. I have known of this to happen and the person did think they were getting away with it. And since it was just a small amount in the beginning, it was not discovered. So the person felt safe and increased their bid amounts. But when the asset company discovered this, all monies had to be refunded for all of the bids. And of course that agent lost their business with that asset company. A hard but powerful lesson.

I hope these few tips: Experience, Education and Integrity can help you in your search for a successful REO Team.

To your business success!

Roxanne

I was just informed by a BPO company that I CAN'T EVER show a property that I do a BPO on to any prospective buyers. This has never been handled this way. I was always told that I couldn't discuss with anyone client or not what the BPO value was being I had a responsiblity to my client indirectly the Bank/Mortgage Company.

Specializing in REO's and doing BPO's as a fill in,which also keeps me up to date on different market values is a good thing. It just blows my mind that this is something that this one company expects.

I knew that if I or anyone in my office had a client or self interested in the property NOW that I couldn't do the BPO--but not that I do a BPO this week and wind up with a buyer next week that the subject property meets their criteria I CAN"T EVER SHOW IT. This is even for still owner occupied properties--not even an REO or Short Sale

Any Thoughts on this???????????????

I was fortunate enough to listen in on Jesse's blogRadio interview with Angelique and Bobby of Bridge Asset Network.

They have what sounds like a unique model for managing distressed assets and are marketing to clients outside the normal channels of property assignments as well as to the traditional sources of inventory.

It was refreshing to hear their perspective on the relationship between agent and client as well as their policy on property preservation. Both were very appealing to me and I am more than a little interested in working with a company who does business in the manner that was discussed today.

So I guess that means I am defnitely headed to Burbank next month....

We could be watching the birth of the next generation of how the sale of distressed assets are managed.

My takeaway from the podcast was that I heard a lot of common sense being spoken by the principals of a company that most reo agents would likely enjoy working for, something sorely missing in most of the reo world these days.

That Troublesome Contract! ….part two

For part one of this “mini-series” please see: http://reopro.ning.com/profiles/blogs/that-troublesome-contract

As you see from Part One, this all started the week after Christmas, yes...Christmas of 2009. But let me get you up to speed with the latest.

Finally, after weeks of back and forth between the buyer's agent and the bank's asset manager, we come to an agreement on terms. Which were pretty good on paper, key phrase here is “on paper”. The deal was $4000 over list price (no competing offers) so the buyer could get more closing cost paid. The bank normally would not pay more the 3%, but the buyer needed up to 6% to make the deal work according to her lender. Red flag #4 or 5, not sure as I had stopped keeping track by now as we were in the second month of this transaction and still do not have a binding agreement. Almost all the delays were cause by the buyer's agent, having him re-write the offer 7, yes 7 times, before he got it right!

I get the A/M to finally understand what was going on and their net did not change, this only took 3 or 4 emails. The A/M send me the contract back to have the buyers initial off all the changes to the contract before he signs it. WTH? Why didn't he go ahead and sign it? But anyway, I roll with it and send it to the buyer's agent with instructions on what to do. This bank's division does not use addendums, they just mark out what they don't like on the original contract and initial all the changes. I've gotten use to it but some agents get very confused about this. I tell the agent the buyer must initial each and every change or it will be sent back to him. Well, it took 3 attempts to all the initials in the proper places, still not sure if it was the agents fault or the buyer's but I'll blame the agent anyway, he should have known better!

So after 2 more weeks I send the contract back to the A/M for his final signature. Shouldn't take more then a day, two if he's busy...right? Wrong again! Three WEEKS later I get the signed contract back and guess what, now we have got to re-negotiate the closing date as by now we only have 8 days to close a FHA loan. Finally, a closing date is set for April 20.....cool! Or so I thought.

Well, by now the buyer has swapped lenders, another red flag! I called the lender to confirm the approval letter like normal, “no problems” says the lender “we can close by the 20th”. COOL! Or so I thought again. This was early mid-March so I thought they had plenty of time to get this done. Wrong again!

Two weeks before any closing I usually start calling the buyer's lender to see how things were going and if there were any snafu's popping up. Well, when I call the lender his office phone number has been disconnected (red flag # 30 something by now?) but he answers his cell phone. Kids and a TV in the background, he quickly tells me he is swamped and would call me back in 10 minutes. Three days later I call him back, same story...will call you back in 10 minutes. I then call the agent, he says he will talk to the lender and call me back in 10 minutes. LOL, this is starting to become a funny game. Two days later he calls me back and says “no problems, we will close on the 20th”. It was around the 15^th, (the closing was the 20th) so I say COOL! (I have got to stop saying this)

On the 20^th the agent calls me early in the morning to say there is a problem. No kidding? There has been a problem since the very start! I told him he gets one shot at extending the closing date, talk to the lender and see exactly what the problem was and how long he needs to get this done and closed. That afternoon he calls me to say that the lender told him that the buyer's credit score was 613, that they were working on some credit repairs and would need an additional 21 days. WTH? This “lender” issued a letter of approval knowing that the buyer is not qualified? And I believe the agent knew this all along!

After I calm down and come off the ceiling, I tell this agent that this was unacceptable and that he needed to find a way to get this closed by the end of the week, 7 days max. To send me a closing extension request form before 4pm. Well I get it at 10pm that night.....requesting the 21 days I told him earlier he would not get. Needless to say that the bank rejected the request and I prepared the Termination of Contract and Release of Earnest Money form, sent it to the A/M on April 21 for him to sign, the day after the scheduled closing. COOL, I think to myself, I can get this back on the market in time for the last week or so of the tax rebates. Which did prompt a lot of activity locally.

Well, not so fast there big boy! Even so the A/M said that the bank wanted the earnest money ASAP because the buyer failed to close, and I sent the form to the A/M last month for him to sign and send back, I'm still waiting. The contract is still active and I cannot put it back on the market because in Georgia, contracts do not automaticly expire if not closed. It MUST be terminated in writing, no if's, and's or but's. This was explained to the A/M when I sent him the form.

I inquired again this past week with the A/M, as now I'm getting nasty letters from our business office wanting the paperwork or threatening to fine me. Again the A/M says that the contract has expired because it did not close, to send him the E/M ASAP. Now I can understand that keeping up with contract laws in multiple states can be overwhelming and hard to do, no problems. He tells me that other agents in my state do not require this form, why am I?

Because it's Georgia contract law and these other agents are wrong, not to mention breaking the law. I was only trying to protect them from any future legal liability. He did not believe me and requested documentation on this, so I found an article written by the very attorney who writes the contract forms for the Ga. Assoc. of Realtors (GAR) that states exactly what I have been telling him. Still not good enough and they call one of the partners in the mega law firm that handles all of their closing services.

That was Thursday, I'm still waiting for a one page form needing one signature and fax/emailed back to me and I'll take care of the rest.

I'm starting to think this house is jinxed! This is the third contract that has failed to close, I've had to fire a team member over it (that's for a whole other blog there), and now I expect to be fired by the bank because I refused to break contract law. Not to mention that I'm about to get a $50 fine for not turning in paperwork that the A/M has refused to sign.

I'm hoping that Part Three is a much shorter story to write!

Steve Adkins – REALTOR®

Better Homes and Gardens Real Estate Metro Brokers

404-843-2500

Hiram Office

www.The-Adkins-Group.com

Designations everywhere, which one is the right one?

Oh my goodness…..this is THE QUESTION.

It’s like being a fat man at Krispy Kreme Saturday morning, 4:30am after you left the club a little tipsy and they just turned on the light!

Just so all of you know, I am a fat man so I can say that. Keep your hate mail…..because I don’t care. By the way, if you don’t know what a Krispy Kreme is…………..it’s the modern day Ambrosia. If you don’t know what Ambrosia is…………Google it.

I know, I know, we are all bombarded by the latest, greatest, newest designations, certifications on the market but, which one is “the ONE”?

Truthfully………I have to say, I can’t think of any one in particular that guarantees you increased business so, by that standard, none of them are the right “one”.

They all seem to tell you the will market you to this bank or that asset management company, they all seem to say they have the best and greatest training, they all seem to have a great website for Asset Managers to easily find you but, NONE OF THEM GUARANTEE LISTINGS!

Now, yes……I do have some certifications and designations and yes, I plan on getting more and keeping the ones I have but, why would I do that? I swear………um……..I am not crazy……..I promise……….(looking around suspiciously).

The reality is, until NAR (National Association of Realtors) gets off their back side and tries to regulate all this training it will remain a buyer beware market place for default education.

Now, I don’t really have a problem with that because I truly believe the market place will weed out the sucky designations on its own but, that may take some time so, what does the average agent do when looking for solid training?

Here are some tips for you to use the next time you are thinking of paying the low low cost of $395.00 or on easy pay for 5 low payment of $79.00 every 2 weeks.

1. Network: Get into your networking groups and find out what other people have. Listen to them, ask them questions. Listen to your fellow agents, knowledge is power!

2. Read: Go to their website and read exactly what they are offering. You will learn very quickly not every training program is created equally.

3. Longevity: Look for curriculum that has stood the test of time. If they are new….it doesn’t mean they are bad, it just means they may not have the best but, if you are properly networking, this will take cares of it’s self.

Good luck on finding edumacation, weze al needdz et!

As an REO broker how can I be more Realtor Friendly?

The REO broker does indeed experience a lot of pressure from the asset managers & companies. It seems that new REO assignments come at times in 'herds' with short-tough deadlines. Yup...been there, done that. So why would I consider taking the time to be 'Realtor Friendly'?

From my self-interest & perspective, being Realtor Friendly saves me time. The most important time I have is the DOM time. My REO listings seem to get shown & promoted first by selling brokers. They have experienced a cooperative list agent, full compensation regardless of list agent referral fees, and most importantly (to me anyway) a 'no war' transaction, which can be exhausting. I believe that being Realtor Friendly negotiates my seller client right-in-to a fast closing! Happy days are here again!

Yes, some selling brokers are hard to work with and need more time than others. Yes, this is a true experience of mine as I'm sure it has been with everyone out there. What I know to be true is that we are dealing with people. Realizing after 10 dedicated years of trying to teach my cat to bark, I no longer argue with the reality that cats don't bark, don't want to bark and cats are happy with a meow. I gave up arguing with the reality that all selling agents (people) should be equally competent, follow directions and have no need of my communication. It is simply NOT the way of it....and never will be.

Being Realtor Friendly is actually quite easy to do. It starts with the understanding that selling agents are a vital part of the transaction equation. They are the finishing 1/2 of the deal. They influence YOUR reputation with your asset manager. If a buyer's agent learns of issues regarding the transaction, they are more likely to keep you informed so you can pass the info on. In my experience, asset managers like and tend to favor a 'no surprise' REO broker. Realtor Friendly means having all of the needed docs and information uploaded on the MLS along with good pictures. Perhaps in the public remarks put "Check this one out with your favorite Realtor!" and in agent remarks might add, " Realtor" friendly listing agent. Questions? Call! Closings are more fun than listings! Do you agree? Let's close this one soon". The open receptiveness coupled with down-home people respect is ultimately your asset managers BEST FRIEND.

Selling agents don't seem to mind or be upset that my genuine motivation is powered by my own self-interest. Short & fast DOMs without struggle seems to earn me more money, which I tend to like.

What Asset Companies look for when considering an agent’s track record?

I have found that when working with asset managers, I have implemented some of these tips. And they help me to have a better working relationship with the asset manager. Can anyone think of more?

1. What is the DOM Average of the agent?

2. What percentage of sales are co-op sales with other firms? a. It should be in the very high 90’s – i.e. 97 – 98%

3. Does the agent have a good track record of finishing tasks before schedule and/or on time?

4. Does the agent communicate in a timely manner?

Thanks to Brian Roberts for bringing this to my attention. This is a re-blog so, to see the original posting, follow this link…..

http://blog.ml-implode.com/2010/05/predatory-loan-modifications/

Body of Article below…..

Predatory Loan Modifications

May 4th, 2010 • Related • Filed Under

Filed Under: Featured Post • Foreclosure • General • big banks • law • litigation • loan mods

Tags: Foreclosure • Predatory Lending • Predatory Loan Modifications

“Yes Virginia……………… there is a Predatory Loan Modification.”

For three years, the US has been subjected to all manner of communications from the government, the media, and lenders about loan modifications. For two years, I have, with increasing frequency, been reviewing actual loan modifications granted to borrowers, and loan modification offers. Over the past six months, I have been doing exams with paperwork included about loan modifications. And March 30, I wrote an article about the results of the HAMP loan modifications.

With what I have learned and know, it is time to finally put words to paper (or to the internet) about what is really going on. If attorneys and homeowners are going to fight to save homes, it is time to present to all the facts concerning the loan modifications efforts and offers. Many have seen portions or parts of the whole, but few have actually put it all together. Some have actually used the term Predatory Loan Modification, but they have applied it to companies that were trying to scam homeowners, by offering to negotiate loan modifications for homeowners, but with no real intent. It was those companies that resulted in SB-94 in California being enacted, with a lot of help from the banks, and that put loan modification companies out of business, and stopping large number of attorneys from engaging in loan modification efforts.

Predatory loan modifications come in many disguises and may include the actual offer, or just the negotiations of the loan modification. The purpose of the modification is to whether now or in the future, to cause the borrower to lose the home. It has no other purpose than that. I shall endeavor to explain many different ones, and then I shall offer an insight into where the next “Battle for California” and the rest of the US must take place.

Same Rate – Higher Payment-Taxes Included

Throughout 2008, this was the most common Predatory Loan Modification. It was seen quite often with Sub-Prime loans, but other loans as well. It is still seen today.

The modification featured an interest rate which was the same as the current rate, but a higher monthly payment. The payment increased because arrearages were packed onto the back of the loan which resulted in the payment increasing. To add insult to injury, taxes were included as well.

The net effect of this “modification” was to induce the borrower to walk away from the home because they knew that the payments could never be made. Those that did accept the modification would end up losing the home anyway, since they could not make the payments.

Forbearance Disguised as a Loan Modification

A common practice used in 2008 and also today is to present a borrower with a letter identifying a “loan modification” offer. The terms of the offer are for a period of time, usually from 4 months to a year, whereby the borrower will usually bring in a lump sum to pay a portion of the arrears, and then over a period of time, make higher monthly payments to “catch up” a portion of the arrears and at the end of the term, bring the loan up to date. The lure of this program is that it implies that successful completion would result in a loan modification.

The fact of the matter is that I have NEVER seen one of these plans result in a successful modification. Once the payments are made, the lender denies the modification and demands the arrearages. When the borrower can’t pay, the lender forecloses. With this program, the borrower has “proven” that he could make the payments, so there is no need to modify, in the minds of the lender.

America’s Servicing Company, aka Wells Fargo, is famous for this program.

Option ARM Loan Modification

This is a different loan modification that I have seen offered numerous times, often by First Federal of Ca. The client is in an Option ARM mortgage.

First Federal contacts the borrower, offering to modify the loan. The modification will put the borrower into a 30 or 40 year fixed rate mortgage. The problem is that the interest rate will be 5.5%. In fact, they told a friend that 5.5% was the lowest that they could go by law. This was a portfolio loan that they owned.

Review of the loan revealed that at the time of the offer the borrower was in a loan with a 2.45 Margin. With the Index at 1%, this meant that he was paying a 3.45% interest rate. First Federal would modify his loan to 5.5%, over 2% higher than what he was currently paying. Of course, it resulted in the borrower declining the offer.

BTW, under the FDIC program, the borrower could have been offered down to 3%, and not 5.5%. Glad to see First Federal gone, but since OneWest took them over, it will be just as bad.

Lower Rate – Two Year Term

This is a common offer. With it, the interest rate will be lowered for a two year term, and as low as 2%. However, after two years, the modification ceases and the loan program returns to its original terms. Of course, this only delays the inevitable.

World Savings Modification

World Savings had a “wonderful” modification program. They would contact a borrower and offer a modification for $299. The offer generally dropped the interest rate by .5%. This lasted for one year. At the end of the year, World would contact the borrower with another modification offer. This offer would cost the borrower $499, and would last a year.

HAMP

Surprised to see HAMP in this list? Why should you be? The lenders and Treasury administer the program.

HAMP modifications offer to qualified borrowers a modification of the loan terms. The terms allow for an interest rate as low as 2%, for five years. After the fifth year, the rate will increase by 1% yearly, until it reaches the Freddie Mac rate at the time of the modification. This is usually about 5%. There it stays until the loan is paid off. Other terms are available with the modification, but to keep things simple, I shall not bother with those terms.

Sounds great with this modification, but here is the catch. I recently evaluated the HAMP program and found that the Mean Debt Ratio for all loans as of Feb 2010 was 59.8%. For March, this Debt Ratio was 61.3%. For the non-lending reader, this means the following:

• If a homeowner has a $10,000 per month Gross Income, and he has a great accountant and tax guy, he is in a 33% bracket for Federal and State Taxes, Social Security, Disability and other Deductions.

• After deductions, his income is $6,667 per month, take home pay.

• Subtract out the 61.3% Debt Ratio and he has $537 per month to live on.

• From the $687, he must cover food, fuel, utilities, medical insurance, clothing, phone, cable and other miscellaneous expenses. And, if he has several children, these expenses continue to mount.

Take into consideration now that the Mean Debt Ratio is the midpoint. 50% of all HAMP mods are over that Debt Ratio, and 50% are under. Subprime loans were for the most part a 50% Debt Ratio, and HAMP is approving them at 61.3% and above. Plus, how many are between 50% and 61.3%, we do not know.

The borrowers are going to face a decision relatively early in the payment process. Do they continue to make the loan payment, and end up having to stop making payments on all consumer debt? Or do they abandon the home, and pay consumer debt? Or do they just file bankruptcy and walk away from everything.

The end result is that most if not all of these modifications will likely fail.

Modification Negotiations That Are Denied at the Last Moment

For the purpose of this article, this is the last Predatory Loan Modification that I will present for review. It is one that I am constantly hearing about.

This Predatory Lending Modification never gets offered. It is all about the process of the modification, attempting to fulfill the requirements of the loan modification process. Common complaints of the process include the following:

• Lost paperwork and faxes

• Never enough paperwork

• Unkept promises

• Paperwork never sent to the borrower

• Trial modification offers but never payment offers for the trial

• Trial modification payments made but the modification is denied

• Modification denied before a trial can start

• Trial payments made, but then the “investor” denies the modification.

The end result is that trial modifications are either never entered into, or if they are, then they are denied at the last moment and foreclosure quickly occurs from there. The common theme in these attempts is a lack of “intent” to do a modification.

The continuing stories being told about the lack of cooperation among lenders and servicers to offer loan modifications led me to pursue the reasons for such behavior. There had to be a common cause, if it could be found. Eventually, I found the root causes and it was dependent upon two different issues.

Advances

The first limiting factor in whether a servicer will offer a loan modification is based upon the concept of “Advances”. When a borrower misses a payment, the servicer must “Advance” that payment to the Trust to ensure the payment stream. Only at such time as the loan is determined to be unrecoverable can the “Advances” stop.

The only way that the servicer can recover the advances is one of three ways:

• Offer a forbearance whereby the borrower brings in money upfront for arrearages, then makes a few payments, and then brings in the rest due. (This is America’s Servicing Company’s initial offer.) Of course, if the borrower had that type of money, then they would not be in foreclosure.

• Check the Pooling and Servicing Agreement to see if arrearages can be “tacked” onto the end of the loan and the servicer can recover the advances upfront. If not, they foreclose. ( I have a copy of a Deposition that the servicer foreclosure expert declares just that.)

• Foreclose, and sell the property where they take the advances right off the top of the proceeds.

When the modification is requested by the borrower, the servicer will immediately check to see if there is any ability to recover the advances other than foreclosure. If not, they decide to foreclose. But, what is even worse, the servicer will engage in trial modification actions, usually providing a trial modification whereby the borrower will make payments to the servicer. These payments are less than what is owed, so they are placed into “suspense” whereby the payments are not credited to the account. When the lender denies the loan and forecloses, the payments are kept to offset the advances until the home is finally sold.

This benefits the servicer by allowing them to collect payments, and uses up time until the foreclosure can occur, but also denies the borrower the ability to hire an attorney to aggressively fight the servicer. Furthermore, it removes from the borrower money that will be needed to find a new place to live. (There is possible legal actions to consider which I will address further on.)

The second limiting factor is whether the servicer can in fact offer a loan modification to a borrower.

The Pooling and Servicing Agreement (PSA)

The PSA governs what can and can’t happen with regard to the servicing of a loan. It specifically details what can occur when a loan is in default or is facing default. Loan modification is one option covered.

Dependent upon the wording of the PSA, a loan modification may not be possible. It may not be authorized or it may restrict the ability to offer a modification by stating that such a modification may be offered, only if the loan is purchased back from the investor for the full balance due. Obviously, a servicer will not purchase back a defaulted loan that is “underwater” so they will refuse the modification, saying that the PSA does not allow for modifications.

The servicer knows immediately what the PSA says with regard to loan modifications. Do they immediately deny the modification? No, instead they engage in “sham” negotiations, requesting paperwork, financials and other documentation while wasting time until they can foreclose on the property. Often, they are accepting trial payments, knowing full well that the modification will be denied. Again, it is simply a way of recovering money.

What to do?

At this point, hopefully the reader and the attorney will begin to understand what I mean by Predatory Loan Modifications. I have attempted to show the issues with these modifications, and have spent several months attempting to determine an effective way to fight the servicers. Along the way, I have learned much, and I have also seen some actions filed against servicers, but because the attorneys did not understand the entire lending and modification process, gaping holes were left in the arguments.

The key to fighting the servicers on the modification issue is to attack the modification process, and show lack of intent to engage in a loan modification. In the case of Indymac/One West, you walk into court backed up by a PSA stating that the servicer could not do a modification without buying a defaulted and underwater loan from the lender. Then, you present a quote from Sheila Bair, head of FDIC, saying that Indymac PSA’s do not allow for loan modifications.

At that point, you are not done. You show the Deposition from an Indymac foreclosure expert that states their key determining factor is whether OneWest can recover “advances” from a PSA, and if it is not possible, they foreclose without regard for anything else.

Finally, you back up your arguments showing the communications between the servicer and the borrower, and showing that their modification actions were “sham” negotiations.

Oh, by the way, I have two court rulings, one in California and one being a 5th Circuit decision that states if a lender engages in loan modification negotiations with no intent to actually do a modification, it is fraud.

Think you can make a Court take notice with this type of an argument?

Summary

I have now presented the case for Predatory Loan Modifications and how this is the next stage in the “Crusade for Homeowners”. No longer can the fight be regarding TILA/RESPA where homeowners lose daily. Lenders know how to fight that. Nor can it be the foreclosure process, which only delays a foreclosure.

I propose that you fight the lenders based upon three significant issues:

• Fraud in the origination of the loan at various levels, and using an Agency/Assignee Liability argument to implicate both the lender and the broker. My Predatory Lending Exams show the way.

• Fight the Foreclosure Process so as to delay the foreclosure and to allow time to present actions based upon Predatory Loan Modifications. (BTW, were you aware that CA CC 1095 in California requires that in any Assignment of Deed of Trust signed as Attorney In Fact requires that the party being acted for be disclosed, or the document is void? I see this error quite often.)

• Fight the Lack of Intent in Loan Modification Negotiations.

Now, as a personal and “shameful” plug for LFI, I would wager to say that you have seen nothing like this presented before. That is because most so-called audit firms have not got a clue about what they are doing. They simply buy TILA/RESPA software so as to determine if the disclosure requirements were met. They have NO UNDERSTANDING of Predatory Lending and what can be offered by competent persons doing such exams.

Furthermore, these people have not stepped into a courtroom, testified in front of a judge, or attended a Settlement Hearing. They cannot know what is important and what is not.

None of these firms have ever thought of the concept of Predatory Loan Modifications.

I spend my days and nights, thinking and living what is happening. I have had to make the hard decisions, and I understand what others are going through. Therefore, this is more than just about being a business.

The reality is that using the same arguments that attorneys are using now, foreclosure arguments and TILA/RESPA, we are only delaying foreclosures. And the banks are winning. Now is the time to consider different tactics, including those regarding Predatory Loan Modifications.

Also, we need to put together cohesive Class Actions which are based upon easily identified classes that have sympathetic Class Members. I have two in mind right now, if the right firm will step up to the plate. (Yes, I do understand the issues regarding Class Actions, and I have tailored the Actions to meet those concerns. If you are an attorney that is interested in my proposals, please call. I WANT to talk with you.)

If anyone personally and professionally knows city and county politicians who have “cajones”, please call me. The cities and counties across the country are facing increasing budgetary concerns. I have been attempting to show cities and counties in CA that they have lost tremendous amounts of money from transfer taxes and recording fees, but the politicians just have no clue as to what I am referring to. What I propose is that with the right politician leading the way, we have the cities and counties attack the MERS and Securitization process regarding the avoidance of Assignments. The cities and the counties have the resources to fight this together that individual attorneys do not have. This could lead to millions in fee recovery, and better yet, a good ruling would then allow all attorneys to “piggy-back” off the lawsuits, and maybe could expose the issues with Securitization and Legal Standing.

A final thought about another tactic that I discussed with an attorney last week, and his comments were favorable. Even the lenders have limited resources. I know this because I regularly get comments from attorneys where they have gone to court and the lender’s counsel has failed to show.

Why not conduct an action whereby attorneys from all 50 states target one lender per month. Imagine the first week of a month, 500 lawsuits filed against a single lender for Predatory Lending. Lenders do not have the resources to react in a timely manner to such an action. Some lawsuits are bound to slip by to the next stage. Sure, like Countrywide, the lender might try to have them all consolidated into one action. But, that takes time, and Predatory Lending Actions do not easily offer the opportunity for consolidation. It may be wishful thinking, but at this point, why not try it?

(Patrick Pulatie is the CEO of Loan Fraud Investigations. He can be reached at 925-238-1221, patrick@loanfraudinvestigations.com. His website is www.loanfraudinvestigations.com. Articles written by him can be viewed on www.iamfacingforeclosure.com. Patrick is not an attorney and does not give legal advice.)

(Phone in my office) **Ring, Ring-------Ring, Ring-------Ring, Ring**

(Jesse) Jesse Gonzalez

(Anonymous Caller) Hi, is this Jesse?

(Jesse) Speaking, how can I help you?

(Anonymous Caller) My name is *Bleep* and I am hoping you can help me.

(Jesse) Ok, what can I do for you?

(Anonymous Caller) I am so frustrated with signing up with all these companies and getting nothing. I have 4 years experience, money to carry my listings and I do a better job than all these “experienced” listing agents, can you help me?

(Jesse) Who are you again?

(Anonymous Caller) You and I met a couple months ago at a conference in Dallas, remember….I was wearing those hot pink spandex Capri pants with that black dominatrix leather top?

(Jesse) I am sure I would have remembered that but, no….sorry, I don’t remember you.

(Anonymous Caller) Well, that’s ok…..can you help me?

(Jesse) I just did, I told you that I don’t remember you. In fact, I went online to REOPro and looked at your profile page and saw you have never written a blog, never created a forum thread, never responded to anyone else’s blog or forums, never submitted a question to our Ask the AM…..

(Anonymous Caller) I don’t mean to interrupt you (thought bubble above my head, “but you just did) however, I didn’t know I had to do all that?

(Jesse) Not to be rude (but I really am being rude) however, did you believe simply asking me to help you would be enough to get me to help you?

(Anonymous Caller) I have read some of your blogs and forums and really like you, I think we think a lot alike and I was hoping you could help me increase my business.

(Jesse) Which blogs did you read? I am asking because I have written many blogs on how to get into the business, how to increase your business, how to network and everything else you might need to do just that.

(Anonymous Caller) Well, I don’t remember specifically which blogs but, it’s ok……I know your busy, thank you though.

(Jesse) Wait a second………just curious, did you get the point I was making?

(Anonymous Caller) You know Jesse, I don’t think you were making any point at all. I think you were just being rude.

(Jesse) Ok, sorry if you thought I was being rude (not really sorry, just saying it because I learned from my years working for someone else, sometimes you say sorry just to make the other person feel better about themselves.) but, my point was, I don’t know you. If I don’t know you, then that tells me you’re not very active on my network and from that I assume you aren’t very active on any network or for that matter, getting your name out there and telling people you are the best at what you do.

(Anonymous Caller) I really don’t have time for this……

(Jesse) Then you really don’t have time for success, have a good day, I wish you the best.

The caller missed the point all together, did you?

Qualifying a Listing agent for a short sale

Lets face it. Time is money. When working as a buyers agent in a short sale, it is extremely important to qualify the listing agent for competency. After all, the last thing any agent wants is a wait of several months in a short sale that is going nowhere fast due to inexperience of the listing agent, only to have the buyer back out of the transaction.

Prior to showing ANY short sale listing, its a good idea to screen the listing agent to see if it is worth spending your time and your buyers time on it. When working as a buyers agent in a short sale transaction, you will want to quiz the listing agent to see what their knowledge and experience is with short sale transactions, you will want to use caution if the agent is inexperienced or not confident.

Here are some helpful questions to ask a listing agent:

• Have you closed any Short Sales before?
  
• Has the lien holder been notified of the intent to short sale?
  
• Have you received any offers on the property?
• Has the complete short sale package been sent to the lien holder AND have you confirmed receipt?
• What communications, if any, have you had with the bank?
• Have you the seller been assigned a Loss Mitigator?
  
• Has there been a BPO? Did you meet the BPO agent? Did you get the results back?
  
• Is there one or two loans? Any other liens?
  
• What are the names of the banks? Are these FHA or VA loans?
• Is there Mortgage Insurance?
  
• How long do you estimate that the lender will take to provide an answer to an offer?

A good rule of thumb is that the listing agent should be "hands on" when it comes to the process, have knowledge of the process, and be able to give updates when needed. Taking the time in advance to ask some questions like the ones above will ultimately save you and your buyers many headaches in the long run. Doing so can lead to a much smoother transaction, and ultimately a much happier buyer!

Check out our FREE short sale agent networking and resource
site, www.TheShortSaleGuide.com,
as well asour listing referral program and online training course!

Mike Linkenauger

"Preventing Foreclosures
One Home at a Time"

(877)737-4903

Keller Williams Realty Associates may be taking the day off on Thursday, May 13, 2010, but it will hardly be a day of rest. Over 25,000 associates across the United States and Canada will spend their day off by giving back as part of the company’s community service initiative: RED Day.

Short for “Renew, Energize and Donate,” RED Day was created to unite Keller Williams Realty offices and associates in an international day of service. During RED Day 2009, over 25,000 Keller Williams associates participated in activities ranging from food and blood drives to cleaning up trash in public parks, doing yard work for neighbors in need or revamping gardens at nursing homes. Last year on RED Day, the company donated over 130,000 hours.

As part of the RED Day effort, Keller Williams Realty of Tracy has chosen to spend the day with McKinley Elementary, one of the 1st schools to be established in Tracy, CA. We have found that this aged site is lacking an outdoor sports field & sports equipment and many of the 450 children come from families with little to no income, making necessities such as paper and pencils a rarity. With the majority of students being on free or reduced lunch and/or breakfast, these teachers and staff have many obstacles to overcome in order to provide the learning facility that each and every child deserves.

We’ve made a commitment to McKinley Elementary to donate 450 backpacks filled with school supplies to start out the 2010-11 school year on the right track. We are reviving the sports field and building a soccer goal for the kids and their soccer field. We’re also hosting a BBQ for the staff and enjoying an afternoon of outdoor play with all the students; DJ playing Kids BOP, activity booths, raffle prizes and soccer play with Troy Dayak of Dayak’s Den.

The Silveria Team has raised nearly $1,000 of cash donations to contribute toward the school supplies. We’ve received gift cards and meal vouchers from many local businesses, which we greatly appreciate.

We are all very excited to spend the day with the students and staff of McKinley Elementary. We would like to invite you all to join us in our RED Day activities. We will start our day at 8:20 AM and stay until school lets out in the afternoon. If you would like to make a donation of school supplies, soccer equipment, raffle prizes or your time, we would love to hear from you.

I would like to know one asset manager who would continue to do business with a person who never thanked them for their business.

The story in my area and I have experienced it is we don't even get a thank you. I have had buyers tell me that Realtors won't show REO's in our area because of how their treated. I'm about to follow suit.

Last REO I closed I did all the work. Let them know who the utility companies were. Had to run out to house the 3 times to make sure the water was on and confirm the electric was on. Where was the REO staff? Isn't it their job to make sure the home has the utilities on and that it's safe to turn on the utilities?

After they receive the contract they don't know you anymore. Buyer's agents manage everything with the title company or should I say the real important part so the file gets closed. How do they keep the asset manager informed when they don't even know what's going on. I guess they just hope it closes and not even a thank you.

I put a contract in on an REO, cash offer, over the price on the MLS and my offer was not accepted. The listing closed and the buyer asked why did the property sell for less than I offered. I know the listing agent got my contract and was submitting offers.

I have an offer in now on an REO and the agent won't submit the offer because he wants the local bank to tell him that USDA funds are still available. I told him that the bank assured me they can apply for the funds. He has to have a separate letter from the bank stating that the bank can still apply for USDA funds. Will I show this REO Teams properties again? No way.

I think asset managers should start sending out surveys to the buyer's agents after these properties close. Price isn't the only thing that sells a home or keeps business coming back.

As a realtor, I reviewed my first HAFA request with a client whom thought the letter receivd by overnight delivery was the same old thing just another letter informing her that she did not qualify for HAMP. There was exactly 14 days to respond and after a telephone call and four different departments and four different representatives we landed in the HAMP center which was outsourced to yet another company. Once we got to the right person and department promises were made verbally to my client and a series of letters are expected next. Looking forward to working in the HAFA program and hope this process is painless.